CSLB CONTRACTOR'S LAW AND BUSINESS EXAM WITH VERIFIED
QUESTIONS AND ANSWERS LATEST UPDATED
The qualifying RME for a construction firm must work at least: - A qualifying RME for a
construction firm must work at least 32 hours per week or 80% of the work week.
The federal Employer Identification Number (EIN) is issued by the: - The Internal
Revenue Service
How many times may you take the contractors license exam before your original
application is voided? - As many times as necessary within 18 months.
When should a contractor renew the contractor's license bond? - 30 days before it
expires.
Every employer of ______ or more full or part time employees must keep written health
and safety records for _______ years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5 - Every employer of 11 or more full or part time employees must keep written
health and safety records for 5 years.
After you have read the plans and specifications, what is the next important step in
writing a bid?
A. Talk to and select subs.
B. Walk the job.
C. Call about materials, price, and availability.
D. Talk to the crew leader about labor. - Walk the job.
Once a budget is finalized, the:
A. Contractor should stick to the budget no matter what happens.
B. Contractor should do the best possible job of staying within the budget.
,C. Budget should be revised each month.
D. Budget should be referred to only if the business has cashflow problems. - The
contractor should do the best possible job of staying within budget. `
Who must sign a joint control addendum to a home improvement contract? - Owner,
contractor, and joint control officer.
When purchasing insurance, what is the best way to chose among different companies?
- Cost and Coverage
Sometimes contracts can prove to be too vague to interpret without disagreement
between owner and contractor. Which of the following steps would best prevent such
problems?
A. Walk the job site with the owner.
B. Review the plans and specifications with the owner.
C. Show the owner the critical path schedule.
D. Include a payment schedule in the contract and review other details of the contract
with the owner. - Review the plans and specifications with the owner.
When an owner signs a receipt for a stop notice, it usually means the owner: - The
owner recognizes that a lien could be placed on funds.
To whom do you report and pay sales tax? - The Board of Equalization
DOSH must investigate a complaint charging a serious violation of health or safety
standards within: - DOSH must investigate a complaint charging a serious violation of
health or safety standards within two working days.
By law, a "hard laborer" may not be younger than ______ years old. - A hard laborer
may not be younger than 16 years old.
When is the last day a customer can cancel a contract that was signed on Friday,
December 21st? - The following Wednesday.
The customer has the right to cancel 3 business days after the day the contract has
been signed and delivered to the. In this case: Saturday Midnight day one. Monday
midnight day two Wednesday Midnight day three. NOTE: Sunday and Tuesday were
not business days since Tuesday was a holiday. Correct answer is Wednesday
midnight.
When a notice of completion has been filed, the original contractor has how many days
to record a lien. - 60 days to record a lien.
, Which of the following financial ratios is the strictest measure of liquidity?
A. Quick Ratio
B. Current Ratio
C. Profitability Ratio
D. Leverage Ratio - The quick ratio is the strictest measure of liquidity.
When should you let your attorney see a construction contract? - After the contract is
prepared but before it is signed.
How often are FICA taxes reported and paid? - Quarterly
Business records must be kept and made available for inspection by the Registrar of
Contractors for a period of _____ after completion of a construction project or operation.
A. One year
B. Two years
C. Three years
D. Five years - Business records must be kept for 5 years.
An employer remits State disability taxes withheld from an employees wages to what
agency? - Employment Development Department
Which act establishes the rights of workers to organize into unions and negotiate
contracts? - National Labor Relations Act of 1935
A contractor has had a problem with employees stealing tools and equipment from job
sites. When conducting job interviews, may the contractor ask prospective employees
about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to convictions.
B. It is not legal to ask prospective employees about arrests not leading to convictions.
C. It is legal for a private employer to ask about arrests not leading to convictions, but it
would not be legal for city or county agencies to ask about such arrests.
D. It is legal for a private employer to ask about arrests leading to convictions, but it
would not be legal for a federal, state, or local public agency to do so. - It is not legal
to ask prospective employees about arrest not leading to convictions.
QUESTIONS AND ANSWERS LATEST UPDATED
The qualifying RME for a construction firm must work at least: - A qualifying RME for a
construction firm must work at least 32 hours per week or 80% of the work week.
The federal Employer Identification Number (EIN) is issued by the: - The Internal
Revenue Service
How many times may you take the contractors license exam before your original
application is voided? - As many times as necessary within 18 months.
When should a contractor renew the contractor's license bond? - 30 days before it
expires.
Every employer of ______ or more full or part time employees must keep written health
and safety records for _______ years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5 - Every employer of 11 or more full or part time employees must keep written
health and safety records for 5 years.
After you have read the plans and specifications, what is the next important step in
writing a bid?
A. Talk to and select subs.
B. Walk the job.
C. Call about materials, price, and availability.
D. Talk to the crew leader about labor. - Walk the job.
Once a budget is finalized, the:
A. Contractor should stick to the budget no matter what happens.
B. Contractor should do the best possible job of staying within the budget.
,C. Budget should be revised each month.
D. Budget should be referred to only if the business has cashflow problems. - The
contractor should do the best possible job of staying within budget. `
Who must sign a joint control addendum to a home improvement contract? - Owner,
contractor, and joint control officer.
When purchasing insurance, what is the best way to chose among different companies?
- Cost and Coverage
Sometimes contracts can prove to be too vague to interpret without disagreement
between owner and contractor. Which of the following steps would best prevent such
problems?
A. Walk the job site with the owner.
B. Review the plans and specifications with the owner.
C. Show the owner the critical path schedule.
D. Include a payment schedule in the contract and review other details of the contract
with the owner. - Review the plans and specifications with the owner.
When an owner signs a receipt for a stop notice, it usually means the owner: - The
owner recognizes that a lien could be placed on funds.
To whom do you report and pay sales tax? - The Board of Equalization
DOSH must investigate a complaint charging a serious violation of health or safety
standards within: - DOSH must investigate a complaint charging a serious violation of
health or safety standards within two working days.
By law, a "hard laborer" may not be younger than ______ years old. - A hard laborer
may not be younger than 16 years old.
When is the last day a customer can cancel a contract that was signed on Friday,
December 21st? - The following Wednesday.
The customer has the right to cancel 3 business days after the day the contract has
been signed and delivered to the. In this case: Saturday Midnight day one. Monday
midnight day two Wednesday Midnight day three. NOTE: Sunday and Tuesday were
not business days since Tuesday was a holiday. Correct answer is Wednesday
midnight.
When a notice of completion has been filed, the original contractor has how many days
to record a lien. - 60 days to record a lien.
, Which of the following financial ratios is the strictest measure of liquidity?
A. Quick Ratio
B. Current Ratio
C. Profitability Ratio
D. Leverage Ratio - The quick ratio is the strictest measure of liquidity.
When should you let your attorney see a construction contract? - After the contract is
prepared but before it is signed.
How often are FICA taxes reported and paid? - Quarterly
Business records must be kept and made available for inspection by the Registrar of
Contractors for a period of _____ after completion of a construction project or operation.
A. One year
B. Two years
C. Three years
D. Five years - Business records must be kept for 5 years.
An employer remits State disability taxes withheld from an employees wages to what
agency? - Employment Development Department
Which act establishes the rights of workers to organize into unions and negotiate
contracts? - National Labor Relations Act of 1935
A contractor has had a problem with employees stealing tools and equipment from job
sites. When conducting job interviews, may the contractor ask prospective employees
about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to convictions.
B. It is not legal to ask prospective employees about arrests not leading to convictions.
C. It is legal for a private employer to ask about arrests not leading to convictions, but it
would not be legal for city or county agencies to ask about such arrests.
D. It is legal for a private employer to ask about arrests leading to convictions, but it
would not be legal for a federal, state, or local public agency to do so. - It is not legal
to ask prospective employees about arrest not leading to convictions.
